Randomization based on covariates is
A) not of practical importance since individuals are hardly ever assigned in this fashion.
B) dependent on the covariances of the error term (serial correlation).
C) a randomization in which the probability of assignment to the treatment group depends on one of more observable variables W.
D) eliminates the omitted variable bias when using the difference estimator based on Yi = ?0 + ?1Xi + ui, where Y is the outcome variable and X is the treatment indicator.
Ans: C) a randomization in which the probability of assignment to the treatment group depends on one of more observable variables W.
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Suppose a country has a current account surplus and that there is no intervention by finance ministries or central banks. This current account surplus indicates that the country has
A) a deficit in its capital account. B) a surplus in its capital account. C) the official reserve transactions balance is positive. D) the official reserve transactions balance is negative.
The real interest rate can be expressed as the:
a. nominal interest rate minus the real interest rate. b. inflation rate minus the nominal interest rate. c. nominal interest rate minus the inflation rate. d. nominal interest rate plus the inflation rate.